November 22, 2013

Debunking squared {47}

Working paper at SSRN

Abstract  Steve Keen has debunked a good part of standard economics. However, he has left standing the theory of profit. This is unfortunate because the theory of profit is the pivot of all theoretical economics. This tightly focused paper clarifies the factual relationship between profit and income, which should be helpful to put Keen's alternative to the standard approach on sound foundations.